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IFC and Ecobank Transnational Incorporated Partner to Support Trade Finance in Seven African Countries
About IFC
A member of the World Bank Group, IFC is the largest global development institution focused on the private sector in emerging markets. IFC operates in more than 100 countries, using its capital, expertise, and influence to create opportunities in developing countries.
About Ecobank Group
Ecobank Group, or Ecobank Transnational Incorporated, is a private pan-African financial services group with unrivaled African expertise. Present in 35 sub-Saharan African countries as well as in France, the UK, the UAE, and China, Ecobank offers a comprehensive range of banking products and services to over 32 million customers.
As part of their efforts to promote trade and stimulate economic growth in Africa, the International Finance Corporation (IFC) today announced the establishment of trade finance facilities in partnership with seven subsidiaries of Ecobank Transnational Incorporated (ETI). This $140 million initiative aims to strengthen the trade finance operations of these subsidiaries, located in Burkina Faso, Cameroon, Côte d’Ivoire, Ghana, Malawi, Mali, and Togo.
The announcement was made at the Africa CEO Forum in Kigali, an event that brings together business leaders, policymakers, and investors to discuss crucial economic and social issues for the continent. This new trade finance facility is part of IFC’s broader program, the Africa Trade and Supply Chain Finance Program (ATRI), which is endowed with $1 billion and aimed at supporting the development of regional trade in Africa.
The partnership with IFC will leverage ETI’s extensive African footprint, facilitating the development of new trade partnerships for local businesses. By strengthening trade lines, this initiative will help reduce the continent’s reliance on imports and foster more autonomous and sustainable economic development.
Essential Support for SMEs and Intra-African Trade
Alain Nkontchou, Chairman of the Board of Directors of Ecobank Transnational Incorporated, emphasized the importance of this collaboration: “Our partnership with IFC testifies to our strong relationship with an important and longstanding partner. Establishing this global trade finance program reinforces Ecobank’s goal of stimulating intra-African trade and supporting small and medium-sized enterprises (SMEs) to engage confidently in cross-border trade.” By removing financial barriers, Ecobank will be able to use its borderless payment platform and various solutions to help businesses take advantage of the African Continental Free Trade Area (AfCFTA) single market.
Sérgio Pimenta, IFC’s Vice President for Africa, added, “IFC’s renewed partnership with the Ecobank Group will facilitate access to finance for businesses in Africa, support economic growth, and boost job creation.” Indeed, this partnership will enable IFC to support small businesses, particularly in environments where obtaining trade finance is often challenging.
Advisory Services to Strengthen Capacities
As part of this partnership, IFC will also provide advisory services to Ecobank and its subsidiaries. The aim is to help these banks enhance their support for SMEs and increase access to finance for businesses owned or led by women. This support will focus on strengthening the internal capacities of the banks to better serve this essential clientele for local economic development.
A Solid Partnership History
The relationship between IFC and Ecobank is not new. Since 1993, the two institutions have collaborated to support trade, business growth, and entrepreneurship in Africa. IFC’s Global Trade Finance Program (GTFP) has played a crucial role by providing guarantees to mitigate risks in new or challenging markets. To date, IFC has issued guarantees worth more than $100 billion globally, including $3.5 billion in Africa for the 2023 fiscal year.
Through this strategic partnership, IFC and Ecobank intend to strengthen their support for intra-African trade, promote economic growth, and encourage entrepreneurship across the African continent.
Our Trade Finance Offer : Offer AML-CFT Trade Finance (1) (1)
Sources :
https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=28172
https://ecobank.com/group/news-and-media?news=20240517055007274gbxpazgw87
